Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 10, Problem 5DQ
Summary Introduction
Interpretation:
Whether or not ROP be reduced by half if annual demand suddenly fell by half.
Concept Introduction:
The service level of the reorder point is the probability that demand will not surpass the supply during the lead time, every time the reorder points activate the placement of a new order. A reorder point (ROP) is nothing but the minimum order quantity that an organization should have in available inventory before they order more goods.
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44. The Kirei-Hana Japanese Steak House in San Francisco consumes 3,000 pounds of
sirloin steak each month. Yama Hirai, the new restaurant manager, recently completed
an MBA degree. He learned that the steak was replenished using an EOQ value of
2,000 pounds. The EOQ value was computed assuming an interest rate of 36 percent
per year. Assume that the current cost of the sirloin steak to the steak house is $4 per
pound.
a. What is the setup cost used in determining the EOQ value?
Mr. Hirai received an offer from a meat wholesaler in which a discount of 5 percent
would be given if the steak house purchased the steak in quantities of 3,000 pounds or
more.
b. Should Mr. Hirai accept the offer from the wholesaler? If so, how much can be
saved?
c. Because of Mr. Hirai's language problems, he apparently misunderstood the offer.
In fact, the 5 percent discount is applied only to the amounts ordered over 3,000
pounds. Should this offer be accepted, and if so, how much is now saved?
The Kirei-Hana Japanese Steak House in San Francisco consumes 3,000 pounds of sirloin steak each month.Yama Hirai, the new restaurant manager, recently completed an MBA degree. He learned that the steak was replenished using an EOQ value of 2,000 pounds. The EOQ value was computed assuming an interest rate of 36 percent per year. Assume that the current cost of the sirloin steak to the steak house is $4 per pound.a. What is the setup cost used in determining the EOQ value? Mr. Hirai received an offer from a meat wholesaler in which a discount of 5 percentwould be given if the steak house purchased the steak in quantities of 3,000 pounds or more.b. Should Mr. Hirai accept the offer from the wholesaler? If so, how much can be saved?c. Because of Mr. Hirai’s language problems, he apparently misunderstood the offer. In fact, the 5 percent discount is applied only to the amounts ordered over 3,000 pounds. Should this offer be accepted, and if so, how much is now saved?
108 Which of the following components of an
ARM adjust periodically, resulting in a change In
the monthly payment?
A) Index and margin
B) Index and interest rate
C) Margin and interest rate
D) Margin and discount points
Chapter 10 Solutions
Practical Operations Management
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4P
Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - Prob. 18PCh. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 2.1QCh. 10 - Prob. 2.2QCh. 10 - Prob. 2.3QCh. 10 - Prob. 2.4QCh. 10 - Prob. 3.1QCh. 10 - Prob. 3.2QCh. 10 - Prob. 3.3QCh. 10 - Prob. 3.4Q
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